OTCPK:KDDI.F

Stock Analysis Report

Executive Summary

KDDI Corporation provides telecommunications services in Japan and internationally.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has KDDI's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.3%

KDDI.F

1.4%

US Wireless Telecom

0.4%

US Market


1 Year Return

5.1%

KDDI.F

3.3%

US Wireless Telecom

6.9%

US Market

Return vs Industry: KDDI.F exceeded the US Wireless Telecom industry which returned 3.3% over the past year.

Return vs Market: KDDI.F underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

KDDI.FIndustryMarket
7 Day5.3%1.4%0.4%
30 Day7.0%-0.5%-1.1%
90 Day9.2%-2.9%-0.5%
1 Year5.1%5.1%4.5%3.3%9.3%6.9%
3 Year-6.0%-6.0%35.0%30.1%45.8%36.4%
5 Year-53.3%-53.3%51.8%38.1%62.9%45.1%

Price Volatility Vs. Market

How volatile is KDDI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is KDDI undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: KDDI.F ($28.63) is trading below our estimate of fair value ($66.95)

Significantly Undervalued: KDDI.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KDDI.F is good value based on its PE Ratio (11.6x) compared to the Wireless Telecom industry average (22.1x).

PE vs Market: KDDI.F is good value based on its PE Ratio (11.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: KDDI.F is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: KDDI.F is good value based on its PB Ratio (1.6x) compared to the US Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is KDDI forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KDDI.F's forecast earnings growth (3.1% per year) is above the savings rate (2.7%).

Earnings vs Market: KDDI.F's earnings (3.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: KDDI.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: KDDI.F's revenue (1.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KDDI.F's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KDDI.F's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has KDDI performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KDDI.F's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: KDDI.F's earnings growth over the past year (4.1%) is below its 5-year average (8.8% per year).

Earnings vs Industry: KDDI.F earnings growth over the past year (4.1%) underperformed the Wireless Telecom industry 7.7%.


Return on Equity

High ROE: KDDI.F's Return on Equity (14.7%) is considered low.


Return on Assets

ROA vs Industry: KDDI.F has a higher Return on Assets than the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: KDDI.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is KDDI's financial position?


Financial Position Analysis

Short Term Liabilities: KDDI.F's short term assets (¥2,791.5B) exceeds its short term liabilities (¥2,707.0B)

Long Term Liabilities: KDDI.F's short term assets (2,791.5B) exceeds its long term liabilities (1,652.2B)


Debt to Equity History and Analysis

Debt Level: KDDI.F's debt to equity ratio (31%) is considered satisfactory

Reducing Debt: KDDI.F's debt to equity ratio has reduced from 35.8% to 31% over the past 5 years.

Debt Coverage: KDDI.F's debt is well covered by operating cash flow (67.5%).

Interest Coverage: KDDI.F's interest payments on its debt are well covered by EBIT (128.6x coverage).


Balance Sheet

Inventory Level: KDDI.F has a high level of physical assets or inventory.

Debt Coverage by Assets: KDDI.F's debt is covered by short term assets (assets are 1.947310x debt).


Next Steps

Dividend

What is KDDI's current dividend yield, its reliability and sustainability?

3.75%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage8.0%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KDDI.F's dividend (3.75%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KDDI.F's dividend (3.75%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: KDDI.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: KDDI.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.4%), KDDI.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of KDDI's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Makoto Takahashi (58yo)

1.5yrs

Tenure

0

Mr. Makoto Takahashi serves as Executive Director of Corporate & Marketing Communications at KDDI Corporation since April 2019. Mr. Takahashi has been the President at KDDI Corporation since April 01, 2018 ...


Management Age and Tenure

1.3yrs

Average Tenure

59yo

Average Age

Experienced Management: KDDI.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: KDDI.F's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Makoto Takahashi (58yo)

    President

    • Tenure: 1.5yrs
  • Toshitake Amamiya (59yo)

    Managing Exe. Officer

    • Tenure: 0.3yrs
  • Akira Dobashi

    GM of Gen. Admn. & HR Division

    • Tenure: 0yrs
  • Kei Amano

    Head of Smartpass Business

    • Tenure: 0yrs
  • Tsutomu Honda

    Managing Executive Officer

    • Tenure: 0yrs
  • Takashi Shoji (61yo)

    Senior Managing Executive Officer & Director

    • Tenure: 3.3yrs
  • Shinichi Muramoto (59yo)

    Senior Managing Executive Officer

    • Tenure: 3.3yrs
  • Yoshiaki Uchida (63yo)

    Executive VP

    • Tenure: 5.3yrs
  • Junnou Matsuishi

    Head of Planning Group Section - Mobile Technical Planning Department

    • Tenure: 0yrs
  • Keita Horii

    General Manager of Investor Relations Department

    • Tenure: 0yrs

Board Members

  • Goro Yamaguchi (63yo)

    Outside Director

    • Tenure: 2.3yrs
  • Makoto Takahashi (58yo)

    President

    • Tenure: 1.5yrs
  • Hirofumi Morozumi (63yo)

    Vice Chairman

    • Tenure: 1.5yrs
  • Takashi Tanaka (62yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: JP¥123.00m
  • Toshitake Amamiya (59yo)

    Managing Exe. Officer

    • Tenure: 0.3yrs
  • Takashi Shoji (61yo)

    Senior Managing Executive Officer & Director

    • Tenure: 3.3yrs
  • Shinichi Muramoto (59yo)

    Senior Managing Executive Officer

    • Tenure: 3.3yrs
  • Yoshiaki Uchida (63yo)

    Executive VP

    • Tenure: 5.3yrs
  • Keiichi Mori (59yo)

    Senior Managing Executive Officer

    • Tenure: 2.3yrs
  • Kei Morita (58yo)

    Managing Exe. Officer & Deputy GM-Personal Business Sector & Exe. Director

    • Tenure: 1.3yrs

Company Information

KDDI Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KDDI Corporation
  • Ticker: KDDI.F
  • Exchange: OTCPK
  • Founded: 1953
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥6.863t
  • Listing Market Cap: JP¥63.241b
  • Shares outstanding: 2.34b
  • Website: https://www.kddi.com

Number of Employees


Location

  • KDDI Corporation
  • Garden Air Tower
  • 3-10-10, Iidabashi
  • Tokyo
  • 102-8460
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIPDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1994
9433TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYMay 1994
KDDI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 1994
KDDI.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

KDDI Corporation provides telecommunications services in Japan and internationally. It operates through four segments: Personal Services, Life Design Services, Business Services, and Global Services. The P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:56
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.